Halifax updates its interest-only mortgage policy

by Aaron Strutt

Aug 27 2018

Halifax has changed its interest-only mortgage policy for new applicants and existing customers making it tougher to qualify.

Halifax requires single or joint applicants to earn at least £50,000 to qualify for an interest-only mortgage if the repayment vehicle is an endowment, investment, pension or the sale of a second property.

The income threshold increases to £100,000 for single applicants or £150,000 for joint applications if they are using bonuses, cash or the sale of the mortgaged property to repay the mortgage.

The amount of equity applicants need in their property has increased from £200,000 to £300,000 when the sale of the mortgaged property. Also, the maximum term for interest-only will need to finish before the clients reaches 70 years, rather than the 80 years for full capital repayment mortgages.

Aaron Strutt, product director at Trinity Financial, says: “Over the last few years many of the lenders have eased their interest-only policies to make it easier to qualify and there is a lot of competition in this market to attract borrowers.

“The sale of the mortgaged property is still a popular repayment vehicle if you have lots of equity in your property or a larger deposit, and not all lenders have a minimum income requirement to qualify.”

Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage